QQQ vs TECS
Invesco QQQ Trust, Series 1 vs Direxion Daily Technology Bear 3X ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | TECS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.01% | |
| AUM | $455.8B | $77M | |
| Dividend Yield | 0.41% | 89.69% | |
| Holdings | 108 | 12 | |
| YTD Return | +17.85% | -63.53% | |
| 1Y Return | +26.45% | -72.90% | |
| 3Y Return (annualized) | +26.07% | -64.58% | |
| 5Y Return (annualized) | +15.16% | -56.47% | |
| Volatility (annualized) | 30.6% | 51.9% | |
| Max Drawdown | -83.0% | -100.0% | |
| Fund Family | Invesco (US) | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Dec 17, 2008 |
QQQ vs TECS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Direxion Daily Technology Bear 3X ETF (TECS) is a ETF from Direxion Shares ETF Trust. Over the past year QQQ returned +26.45% while TECS returned -72.90%. Year to date, QQQ is up 17.85% versus a loss of 63.53% for TECS.
Over three years, QQQ compounded at +26.07% per year against -64.58% for TECS; over five years the annualized figures are +15.16% and -56.47% respectively. Across the full 18-year window we track, QQQ has the edge at +13.09% annualized vs -57.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TECS has been the more volatile fund, with annualized monthly volatility of 51.9% compared with 30.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -83.0% for QQQ and -100.0% for TECS. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.93. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TECS charges 1.01%. On a $10,000 position that is $18 vs $101 annually, a gap of $83 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 89.69% for TECS.
Holdings Overlap
QQQ and TECS share 0 holdings out of 107 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or TECS?
QQQ has an expense ratio of 0.18% while TECS charges 1.01%. QQQ is the cheaper option. On a $10,000 investment, that is $83 per year of difference.
Which performed better, QQQ or TECS?
Over the past year QQQ returned +26.45% vs -72.90% for TECS, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.09% vs -57.86% for TECS. Past performance does not guarantee future results.
Which is riskier, QQQ or TECS?
TECS has been the more volatile fund at 51.9% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TECS -100.0%.
Should I hold both QQQ and TECS?
QQQ and TECS have a monthly-return correlation of -0.93, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TECS?
QQQ and TECS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, QQQ or TECS?
QQQ yields 0.41% while TECS yields 89.69%, so TECS currently pays the higher dividend yield.
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